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India Says 45% of Exports to US Escape New 10% Tariff

Published July 26, 2026 at 10:33 AM UTC

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The Indian government announced that nearly half of its exports to the United States will be exempt from the new 10% tariff imposed by Washington. This exemption covers about 45% of Indian goods shipped to the U.S., softening the blow for key industries such as textiles, pharmaceuticals, and auto components. The announcement came after weeks of bilateral discussions, where Indian officials argued that certain products already faced low or zero tariffs under existing trade agreements. For Indian exporters, this means that a significant portion of their business will not see higher costs, providing some relief in a volatile global trade environment. However, the remaining 55% of exports will still face the new levy, hitting sectors like machinery and electronics. The U.S. decision follows a broader tariff policy aimed at reducing trade deficits, and India's partial exemption was seen as a diplomatic win. Still, the long-term impact on India's export competitiveness remains uncertain as global supply chains adjust to the new trade landscape.